If Colombia decided to specialize in the produc- tion of coffee, it could trade coffee to Canada
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• If Colombia decided to specialize in the produc- tion of coffee, it could trade coffee to Canada in exchange for computer software. This process illustrates gains from specialization and trade. Both countries have a comparative advantage in producing one particular good. Colombia has ideal coffee-growing conditions, and Canada has a workforce that is more adept at writing software. Since both countries specialize in what they do best, they are able to produce more value than they could produce by trying to make both products on their own.
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